FMCG Firms Face Disruption in Sep qtr, Upbeat about Future Growth on Favourable Economic Conditions

FMCG companies selling soap to soft drinks in the Indian market reported some impact on their sales in the September quarter from disruption owing to GST reforms, along with unusually heavy rains in parts of the country, but they see growth in the coming quarters, helped by favourable macro-economic conditions.

Leading global markers, including Unilever, Reckitt, Heineken, PepsiCo, and Coca-Cola, in their respective earnings calls, have mentioned challenges they faced due to disruptions in trade channels in September.

"Our emerging market performance is improving; India, in particular, is very well positioned over the medium term. The GST reform has had some impact in the short-term, but we believe it is very good news for 40 per cent of our portfolio with close to a 10 per cent price reduction," Unilever CEO Fernando Fernandez said.

British FMCG major Reckitt said its net revenue growth in India was impacted in the September quarter due to the implementation of new GST slabs; however, it reported volume-led growth in its germ protection brand Dettol.

Replying to a query in the earnings call, Reckitt CFO Shannon Eisenhardt said "the impact in Q3 of GST phasing being low to mid-single digits and that our India like-for-like was low single digit in Q3.” Reckitt CEO Kris Licht, who was also on the call, said the company has a very successful business in China and India.

“Both of those businesses have been delivering great performance now for a long time. We have a big opportunity to take the next tranche of markets to that level of excellence and execution, and that's a big focus at the moment in our emerging markets portfolio,” he said.

Dutch brewing major Heineken NV, which owns United Breweries Ltd (UBL) said its India beer volume has been impacted with a decline of "mid-single-digit" in the September quarter of 2025 on account of unusual heavy rains in parts of the country during the monsoon.

However, its organic net revenue grew by a 'mid-single-digit', which is largely supported by price hikes in some of the key states along with a portfolio mix.

Hienekin CFO Harold van den Broek said: ”In India, organic net revenue (beia) 4 grew by a mid-single-digit, while beer volume fell by a mid-single-digit, impacted by the monsoon season. We outperformed the market.” American Cola majors Coca-Cola and PepsiCo also reported disruptions from rain in the September quarter.

PepsiCo Inc Chairman & Chief Executive Officer Ramon L Laguarta said the September quarter was impacted because of weather conditions.

Without naming any rivals, he said the beverage market is witnessing competition that may impact growth in the next few quarters. Replying to a query on macro pressures in regions like Latin America, Asia Pacific, he said: ”We're seeing growth in India. India was more impacted by weather, and there's some competitive situation in the beverage category that will affect the growth maybe for a few quarters, but coming back strong” The Coca-Cola Co Chief Operating Officer & Executive Vice President Henrique Gnani Braun said on earnings calls that its volumes declined in Asia Pacific markets, including India, due to "Inclement weather" during the monsoon season.

However, while replying to a query, Chairman and CEO James Quincey said in the emerging market business, India has at one end "huge potential for growth in volume over many, many years" but at "much lower prices".

French spirits major Pernod Ricard said its India sales were up 3 per cent in the latest quarter; however, it was impacted due to excise policy changes in Maharashtra.

“While enjoying strong underlying consumer demand dynamics, sales in India are negatively impacted by the excise policy changes in Maharashtra implemented in July,” said Pernod Ricard CFO Hélène de Tissot.

India sees strong sales growth, both on Royal Stag and especially on international brands led by Jameson. “For the full year, we are expecting the excise policy change to continue to weigh on our overall sales performance, though with continued favorable and dynamic underlying trends,” he said.

Swiss maker Nestle SA has mentioned India in its global earnings, noting “strong performance” and “good momentum”.